Last Updated on January 29, 2024 by ethinos
On January 25, 2024, ACC Limited (BSE, NSE: ACC) announced its Q3 2023-24 results, reporting Q3 FY24 Operating EBITDA on the rise at 139% at ₹905 Cr and PAT on the uptick by 375% at ₹538 Cr.
Additional Read: Q3 Results Dashboard
Table of Content
ACC Limited Q3 Result Takeaways
ACC Limited, one of the most reliable Indian legacy brands and
one amongst India’s largest building materials and cement companies belonging to the well-diversified Adani Group, has declared strong Q3 FY24 financial results resting on a steep growth in volume as well as an improvement of relevant KPIs. Here are the result highlights:
- Financial Highlights for Q3 FY24
- In Q3 FY24, the Company has achieved important improvements across financial metrics.
- The Revenue has grown by 8.3%, with the Operating EBITDA (excluding other income) grwoing 139%, and the EBITDA margin increasing by 10 pp from 8.4% to 18.4%, the highest it has been in 6 quarters.
- Cash & Cash equivalents stood at ₹4,282 Cr, displaying an improvement against the previous quarter (₹3,634 Cr).
- The Company’s consolidated Net Worth has shown an improvement of ₹538 Cr and stood at ₹15,361 Cr.
- The Working Capital of the Company was amongst the best relative to its peers and stood at a cycle of 28 days.
- There was a steep jump in EPS from ₹6.01 in December 2022 to ₹28.55 in December 2023.
- Shareholders’ net worth reflects a turnaround in all KPIs, showing healthy financial performance and strength in the Company’s balance sheet.
- Business Highlights for Q3 FY24
- The Company’s initiatives on the side of operational excellence continue to support the improvement of performance, productivity, and optimisation of cost.
- At the Ametha Integrated Cement Plant, 1 MTPA cement grinding began in Q3 FY24.
- In September 2023, 3.3 the Company commissioned the MTPA clinker production facility. In January 2024, ACC announced the acquisition of 55% of a stake in Asian Concretes and Cements Private Ltd (ACCPL), and with its subsidiary, Asian Fine Cements Pvt Ltd (AFCPL), has a 2.8 MTPA cement capacity. This will essentially enable more improvement in the growth of volumes in the upcoming quarters.
- The Company reduced the cost of kiln fuel, led by optimisation of a fuel mix and greater consumption of alternative fuels.
- In Q3 FY24, 16.3 MW of a waste heat recovery system (WHRS) at Ametha was commissioned, and this resulted in an increase in the WHRS capacity, to 46.3 MW.
- The Company commenced work on the WHRS facility at Chanda (18 MW) and at Wadi (21.5 MW) in Q3 FY24, and this is on the right track, to be commissioned in FY25. This will result in the total capacity of WHRS reaching 85.8 MW, with WHRS share in the total power mix at 25%.
The Management’s Take on Q3 Results
The CEO and Whole Time Director of ACC Limited had some key aspects of Q3 results to share and these are highlighted below:
- The Company’s financial standing has witnessed a turnaround in the last 12 months.
- The recent additions in capacity have reached 77.4 MPTA, enabling Revenue growth and volume increases on a sustainable basis.
Q3 Outcomes – Branding, Accolades, and Outlook
In the Company’s Q3 FY24 result report, the Company has some details to share about other aspects of the business, leading to its quarterly success:
- Boost in Branding: As part of the Company’s initiatives related to branding, ACC Limited launched thematic campaigns initiative, thematic campaigns on new digital platforms and channels during the Cricket World Cup on new channels and digital platforms. Additionally, the Company was the official partner of the We were the official partner of the ‘Gujarat Giants’ for the 10th Pro Kabaddi League, and a partner of the Gulf Giants.
- ACC and Awards: ACC has earned several recognitions and awards for its efforts at sustainability and safety, especially in the area of mining operations.
- Outlook for ACC: The Company estimates that the demand for cement will continue and is on the path to growth, growing at 7%-8%, led by infrastructure investment and major-scale residential projects.
- By 2030, the Company expects the country to move from a USD 3.5 trillion economy to a USD 7.3 trillion economy by the year 2030. This will lead to opportunities to buy petcoke atr lower cost and will aid in optimising fuel costs. All this will support the Company in lowering its own costs.
Financial Results at a Glance
Here is a glimpse of the financial results of Q3 (figures in ₹ Cr as reported by the Company’s results, except where indicated otherwise):
| Metrics | Q3 FY 2023-24 | Q3 FY 2022-23 |
| Sales Volumes (Cement&Clinker) | 8.9 Mn Tn | 7.6 Mn Tn |
| Sales Volume (Ready Mix Concrete) | 0.66 Mn Cub M | 0.79 Mn Cub M |
| Revenue from Operations | 4,914 | 4,537 |
| EBITDA | 905 | 379 |
| EBITDA % | 18.4% | 8.4% |
| Profit After Tax (PAT) | 538 | 113 |
| EPS (diluted) in ₹/share | 28.55 | 6.01 |
Additional Check: ACC Limited Share Price
Q3 FY24 Result Summary
ACC Limited is a key subsidiary of Ambuja Cements, and amongst India’s top cement and ready-mix concrete manufacturers. A major player under the umbrella of the Adani Group, in and of itself a large and variegated conglomerate, ACC boasts 20 cement-producing sites, more than 82 concrete plants and a network of nationwide channel partners for its broad customer base. The Company also has a state-of-the-art R&D unit, striving to bring innovation and technology to the business of cement production. Incorporated in 1936, the Company has been the winner of several recognitions in terms of its success and growth, as well as its ESG efforts.
For Q3 FY24, the Company has seen a major breakthrough in business success and is spurred on to achieve more in the subsequent months. With a solid set of figures to back its growth in the quarter, its profit is up more than 7% compared to the same quarter of the previous financial year. Across the board, and aligned with Indian infrastructure growth, ACC Limited is set to make the most of its achievements and expansion capabilities.
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Source: ACC Press Release on BSE
